Cost Savings

PCG Creates Cost Savings for Global Medical Device Company

  • Utilized Lean Six Sigma principles to identify and quantify opportunities.
  • Improved distributor turns, reduced overall inventory, improved inventory tracking worldwide and revised policies and procedures.
  • Identified the “quick win” items vs. long term plans.
  • Implemented kaizens for quick wins (5-30 day implementation).
  • Utilized standard project management methodology for programs > 30 days in duration.

5 Year NET EBIT Impact: $20MM 

PCG helps with Procure-to-Pay business process management

Created strategic initiative for global firm to analyze procurement processes across multiple business units. Identified leveraged spending and working capital improvement opportunities such as payment timeframe variations against agreed upon terms with suppliers. Established clear metrics and hypotheses followed by deep portfolio analysis.

Key Activities

  • Established standard processes and metrics.
  • Developed hypotheses to test/analyze.
  • Identified opportunities based on analysis

Results

This initiative brought $60MM in working capital improvement in the AP area along with standardized metrics and roles to support ongoing analysis and ensure maintained gains. Additional opportunity portfolios provided to leadership illustrated clear strategic sourcing consolidation opportunities for redundant suppliers in the same categories.

Is your business experiencing a similar problem? Reach out to PCG today.

Project Consulting Group 510 First Avenue North, Suite 400
Minneapolis, MN
Sales: 800.731.7153 Recruiting: 800.731.8546 All Other Inquiries: 612-330-0123 Fax: 612-330-0121 results@pcg-usa.com